Do you want to know the risks of timeshare default? It is important that timeshare owners understand the consequences they will occur if they don’t pay their payments. If you don’t make your payments as promised, there are serious repercussions to face. It isn’t worth the long term consequences including a negative credit score. Also, some owners even become timeshare scam victims when they are targeted by fraudsters who claim they can cancel timeshares for a fee. This is simply not possible. Keep reading below to learn the risks of default on timeshare and make wise financial decisions!
Risks of Default on Timeshare
As a timeshare owner, members sign a contract to agree to make regular payments to use their vacation unit. If a member meets a financial difficulty, they still have to pay dues. When the contractual responsibility is not met and a member defaults, they will face serious consequences. Due to this, it is important timeshare owners understand the repercussions if make payments aren’t made as promised. To begin with, credit score will be adversely affected. A good credit score is important because it is considered if ever you need to take out a loan or obtain a mortgage down the road. In addition, legal action could be taken against a member that defaults. The best approach is to avoid defaulting and work out a way to make your payments as promised. That way, you can continue to use and enjoy your vacation unit and create amazing memories with loved ones.
Pay Your Maintenance Dues
In addition to regular payments, maintenance fees must also be paid on time. Maintenance dues keep the property in great condition for members to enjoy a beautiful place to vacation every time they visit. If members stop paying their maintenance dues, delinquent fees and interest fees will be added to their account. Plus, maintenance fees need to be up to date in order to access the vacation unit. If a member doesn’t pay their timeshare maintenance dues, they lose all rights to use the vacation unit. In addition, the timeshare provider can even sell your debt to a collection agency if they believe the member will not get back on track. Collection agencies are aggressive and will only add stress to your life. Don’t risk the hassle and stay on top of your payments!
Also, even foreclosure proceedings are possible if a timeshare owner doesn’t make their payment as promised. For starters, the existing provider typically sends a written warning about missed payments. Next, they will try to contact the member by emails and phone calls. If a member continues to ignore communications and fails to make their payments, the provider can start foreclosure proceedings. As a result, even a member’s personal possessions can have a claim filed against them. Similarly, if a loan was taken out or if a credit card was used to pay for the timeshare, those responsibilities still have to be met. Also, late fees and interest will accrue that can cause even more financial stress in your life.
Cancellation Scams Are Possible
Sadly, some timeshare owners even become victims of timeshare cancellation scams. Fraudulent companies promise owners that they can cancel their timeshare for a fee. However, the truth is no one can cancel a legally binding agreement once the rescission period ends. Scammers like to make a quick buck by targeting existing vacation club owners who want to get out of their contract. However, when the unsuspecting owner involves the scammer, they just add financial stress to their life. The scammers will charge owners an upfront fee, and then quickly disappear without providing any legal service. The reality is, timeshare cancellation is not an option after the cooling off period ends. To stay safe, direct any questions about your membership to your existing provider. Always avoid third party companies that could cause you to become a scam victim.
Now you know the risks of default on timeshare. Be responsible and make good on your financial commitment if you become a timeshare owner. If you want the best option, go with a quality provider like the Villa Group. They have luxury resorts in the top destinations in Mexico that members love to visit. The accommodations, amenities and services are first class. That way, every vacation can be just as amazing as the last one. Remember, always make your payments so you can have unforgettable vacations with your loved ones now and forever!